The global sukuk market has entered 2026 with strong momentum, building on record issuance volumes in 2025 and a broadening investor base that increasingly spans both Islamic and conventional investors seeking ethical, asset-backed fixed-income alternatives.
Issuance Trends
Total global sukuk issuance in 2025 reached approximately USD 210 billion, marking a new record and reflecting growing confidence in the instrument across both sovereign and corporate issuers. Malaysia maintained its position as the largest sukuk market, accounting for roughly 40% of global outstanding sukuk, followed by Saudi Arabia and Indonesia.
Green and sustainable sukuk have emerged as a particularly dynamic segment, with issuance volumes more than doubling over the past two years. These instruments combine the ethical principles of Islamic finance with environmental sustainability objectives, attracting a new cohort of ESG-focused investors.
Regulatory Developments
Regulatory frameworks for sukuk continue to evolve and strengthen across key markets. Malaysia's Securities Commission has introduced updated guidelines that enhance transparency and standardisation, while the UAE and Saudi Arabia have implemented reforms aimed at facilitating cross-border issuance and settlement.
The growing harmonisation of Shariah standards across jurisdictions is reducing structural complexity and improving comparability for investors, although some differences in interpretation remain between the Malaysian and Gulf markets.
Outlook for 2026
We expect global sukuk issuance to continue its upward trajectory in 2026, supported by sovereign funding needs, corporate refinancing activity, and the continued expansion of the sustainable sukuk segment. For investors seeking fixed-income exposure within a Shariah-compliant framework, the sukuk market offers a maturing and increasingly accessible range of options.